The mood in Germany’s chemical industry eased a touch in January. The Ifo industry sentiment index rose to -23.5 points from -24.6 in December.
While the current situation deteriorated to -34.9 points (down from -29.7 in December), expectations sharpened, climbing from -19.3 to -11.4 points. “The chemical sector looks somewhat less pessimistic about the future, but ongoing business remains weak” noted Ifo industry expert Anna Wolf.
At the close of 2025 crisis sentiment still dominated, yet demand began to show a slight upswing in January. For the first time in months, the order backlog improved: the indicator moved from -23.7 to +3.4 points and the backlog now covers 1.8 months of production, up from 1.4 months in October. Still, companies rate the overall order book at -47.1 points, signalling demand remains very weak.
Capacity utilisation in the sector sits at 72.7 %, noticeably below the ten‑year average of 80.9 %. Firms plan to scale back production and reduce staff in the coming months. “Ongoing price pressure and uncertainties in foreign trade-especially looming tariffs-continue to weigh on the chemical industry” Wolf added.
